Bank Reconciliations

This feature is still a work in process.

A bank reconciliation is performed to ensure that all the bank entries were captured and captured correctly. The process involves matching ledger entries to bank statement entries.

Before a bank reconciliation can be performed for the first time the following steps must be taken:

1. Add the Bank module to a menu.
2. Set User Access for the bank module: … Bank > Menu (button) > Edit User Access.
3. Create statuses for the bank entries:
   1. … Bank > Menu (button) > Edit Statuses (Bank Header) > Add Default (button).
   2. … Bank > Menu (button) > Edit Statuses (Bank Item) > Add Default (button).

In the context of bank recons, the recon is treated as a bank transaction with the header status referring to the reconciliation header, and the transactions that are added to the reconciliation are treated as the items.

Transactions are displayed if:

• One side of their entry is posted to the selected bank account.
• The transaction is in an Accounting status.

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Bank Reconciliations List View

Buttons Explained

Button	Description
View	Displays a list of bank recons or import entries.
Arrow on View button > Reset Data Filter	Resets the selected filters.
New	Creates a new Bank Import or Bank Reconciliation as selected from the dropdown list.
Menu	Views – Default – Items Settings – Edit User Access – Edit Accounting (Accounts, VAT Types, Currencies, Credit Terms, Bank Profiles)  – Edit Statuses (Bank Header) – Edit Statuses (Bank Item) Layout

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Filters Explained

Filter	Description
Set	A selection of date options including No Date to display all the entries.
Date (radio button)	Works in conjunction with the date. Displays entries that were created on that date (i.e. the date on which the recon or import was created.)
Updated (radio button)	Works in conjunction with the date. Displays entries that were updated on that date (i.e. the date on which the recon or import was updated.)
Account	A dropdown list of bank accounts to select one or all.
Status Groups	Checkboxes to filter the entries based on the status groups. If none of the boxes are checked, all the entries are displayed.

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Fields Explained

Field	Description
Status	The status of the recon or import.
Bank No.	The system-generated number allocated to the entry.
Type	Whether the entry is an Import or Recon.
Account	The name of the bank account.
Date Start	The start date of the recon or import. After the first recon is created, this date is automatically set as the day after the previous recon ended.
Date End	The end date of the recon or import.
Bank Balance	The bank balance at the end of the period.
Ledger Balance	The ledger balance at the end of the period.
Variance	The difference between the bank and ledger balances.
Widget	A submenu with the following actions: – Edit – Delete

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Bank Reconciliations Edit View

Buttons Explained

Button	Description
Arrows	Navigates between bank reconciliations / imports.
New	Creates a new Bank Import or Bank Reconciliation as selected from the dropdown list.
Save	Saves any changes
Actions	Insert/Update From Transactions: Generates a list of transactions that were posted to the specific bank account. Delete Bank: Deletes the bank reconciliation.
Menu	Open Ledger: Opens the transaction in the ledger. Settings – Edit Accounting (Accounts, VAT Types, Currencies, Credit Terms, Bank Profiles)  – Edit User Access – Edit Statuses (Bank Header) – Edit Statuses (Bank Item) Layout

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Fields Explained: Header

Field	Description
Status	A dropdown list of statuses to select a header status.
Bank No.	The system-generated number allocated to the entry.
Type	Whether the entry is an Import or Reconciliation.
Account	A dropdown list of bank accounts to select one.
Date Start	The start date of the recon or import.
Date End	The end date of the recon or import.
Note Field	A field to type a note.
Bank Balance	A field to enter the bank balance as per the bank statement.
Ledger Balance	The ledger balance at the end of the period.
Variance	The difference between the bank and ledger balances.

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Fields Explained: Transactions

Button and Checkbox	Description
Synchronise Ledger	Not applicable to bank reconciliations.
Refresh (button)	Not applicable to bank reconciliations.

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Field	Description
ID	The system-generated number for the entry.
Status	The item’s status where item refers to the transaction (which is an item on a bank reconciliation).
Date	The date of the transaction.
Description	The transaction’s description.
Amount	The transaction amount.
Created	The date on which the entry was created.
Updated	The date on which the entry was last updated.
Updated By	The user who last updated the entry.
Trans No.	The original Transaction Type code and number.
Widget	A submenu with the following action: Open Ledger: Opens the transaction on the right panel.

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Tutorials

How to Create a Bank Reconciliation

You do not have to start and finish a bank recon in one go. You can leave it and return to it later.

1. Navigate to Bank.
   • Note: The module is named Bank, however, it might be renamed on the menu (e.g. to Bank Recon or Bank Import). It can be added to any menu group (e.g. Accounting).
2. Click New (button) > Bank Reconciliation.
3. Complete the following fields:
   1. Account = Select the bank account from the dropdown list.
   2. Start = If this recon is the first bank recon, select a date from the calendar. If previous recons exist, this date is automatically filled in as the day after the previous recon ended.
   3. End = Select the end date from the calendar.
   4. Bank = Type the closing bank statement balance.
4. Click Save (button).
5. Click Actions (button) > Insert/Update From Transactions.
6. If the variance is not zero, check each entry against the corresponding entry on the bank statement.
   1. If the amounts differ,
      1. Right click the entry and click Open Ledger on the context menu.
      2. Edit the amount as needed.
         • Note: Most likely you need to change the transaction’s status to allow editing and change it again afterwards to its previous status.
   2. If there are missing entries, enter them as you would any other similar entry (e.g. Bank Charges can be recorded as a Bank Payment).
   3. Return to the bank recon and click Actions (button) > Insert/Update From Transactions.
7. If the variance is zero:
   1. Change the recon’s status to Complete.
   2. Click Save (button).

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Learn More

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